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Item 1.13 - City's Investment Report as of March 31, 2019�`�� ar Pc��}��. City of Poway COUNCIL AGENDA REPORT DATE: May 21, 2019 TO: Honorable Mayor and Members of the City Council FROM: FROM: Donna Goldsmith, Director of Finance CONTACT: Donna Goldsmith, Director of Finance (858) 668-4411 or dgoldsmith@poway.org SUBJECT: City's Investment Report as of March 31, 2019 Summary: APPROVED ❑ APPROVED AS AMENDED ❑ (SEE MINUTES) 17,903,428 DENIED ❑ REMOVED ❑ CONTINUED 21,342,785 Resolution No. 112,130,762 Quarterly reports of investments are required to be presented to the City Council. For your information, attached is an investment portfolio report as of March 31, 2019. Recommended Action: It is recommended that the City Council accept and file the attached report. Discussion: Pursuant to Government Code Sec. 53646(b) and the City's Investment Policy, the Finance Director (i.e., Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information. The City is in compliance with its adopted investment policy, and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of March 31, 2019, was $112,130,762. It consisted of the following: Investment Portfolio Total Deposits at CaITRUST 22,189,943 Deposits at the Local Agency Investment Fund (LAIF) 17,903,428 U. S. Treasury Notes 12,473,258 U. S. Instrumentalities 38,221,348 Corporate Notes 21,342,785 Fair Value of Investment Portfolio as of March 31, 2019 112,130,762 The attached portfolio report (attachment B) and investment report (attachment C) were prepared by the City's investment manager, Insight Investment, with input from the City's Finance Department. The portfolio report includes all investments while the investment report includes only those investments managed by Insight Investment. All City funds, except those identified in Attachment D, are pooled and invested, with earned interest allocated quarterly based on the average daily cash balance in each fund. The funds on deposit at LAIF and CaITRUST earn interest at variable rates. The interest rate for the month ending March 1 of 28 May 21, 2019, Item #1.13 2019 is estimated at 2.44% for LAIF, 2.55% for the CalTRUST short-term fund, and 2.34% for the CalTRUST medium-term fund. The values of fixed income securities, as legal investment tools authorized under California government codes, are closely tied with interest rates. As interest rates go up, the market values of the securities go down. The difference between amortized cost and fair value is considered an unrealized gain or loss. A realized loss is when the principal of the security is redeemed before its maturity date at a fair value lower than its amortized cost value. The amortized cost value of the externally managed investment portfolio is $72,255,077; the fair value is $72,037,391 for an unrealized loss of ($217,686) or .30% of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non -managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, at March 31, 2019, was $472,630. The source of the market value information for these investments was U.S. Bank. The total book value of the non -managed investments was $194,001 at March 31, 2019. The City's cash on hand at March 31, 2019, totaled $690,629. The March 31, 2019, balance of the City's Library Trust Fund is $259,101. Through the Fiscal Year 2018-19 period ending March 31, 2019, no transfer of interest earnings has been made to the General Fund. At the close of Fiscal Year 2018-19, 90% of the Library Trust Fund's interest earnings will be transferred to the General Fund. Environmental Review: This item is not subject to CEQA review. Fiscal Impact: The externally managed investment portfolio earned $121,176 interest during March 2019 as well as $97,455 during February 2019 and $107,377 during January 2019. Public Notification: None. Attachments: A. Investment Statistics B. Investment Portfolio Report prepared by Insight Investment C. Investment Report Prepared by Insight Investment D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at March 31, 2019 Reviewed/Approved By: Wendy lserman Assistant City Manager Reviewed By: Alan Fenstermacher City Attorney Approved By: 441�117 Chris azelt City Manager 2 of 28 May 21, 2019, Item #1.13 City of Poway Investment Statistics Externally Manacled Investment Pools Fair Value: U. S. Treasury Notes March December March U. S. Instrumentalities 2018 2018 2019 Separately Manacled Investment Pools 21,357,917 21,260,046 21,342,785 Fair Value: 1,997,776 0 0 CaITRUST Short -Term Deposits 10,775,394 10,949,376 11,050,617 CaITRUST Medium -Term Deposits 10,818,564 11,000,094 11,139,326 Deposits at the Local Agency Investment Fund (LAIF) 15,849,451 8,345,438 17,903,428 Total Fair Value 37,443,409 30,294,908 40,093,371 Weighted Average Yield 1.63% 2.29% 2.44% Effective Average Duration in days 1 1 1 Weighted Average Maturity in days 1 1 1 Externally Manacled Investment Pools Fair Value: U. S. Treasury Notes 13,899,550 11,918,645 12,473,258 U. S. Instrumentalities 35,405,631 38,598,231 38,221,348 Corporate Bonds 21,357,917 21,260,046 21,342,785 Municipal Bonds 1,997,776 0 0 Total Fair Value 72,660,874 71,776,922 72,037,391 Amortized Cost Value: U. S. Treasury Notes 13,989,573 11,981,543 12,497,341 U. S. Instrumentalities 35,794,528 38,831,128 38,326,583 Corporate Bonds 21,613,527 21,442,600 21,431,153 Municipal Bonds 2,000,000 0 0 Total Amortized Cost Value 73,397,628 72,255,271 72,255,077 Unrealized Gain (Loss) (736,754) (478,349) (217,686) Accrued Interest Earned 103,703 111,115 121,176 Weighted Average Yield 1.52% 1.87% 1.95% Effective Average Duration in years 1.30 0.88 0.88 Weighted Average Maturity in years 1.34 0.91 0.92 Total Fair Value of Portfolio Assets Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Glossary of Yield Terminology 110,104,283 102,071,830 112,130,762 1.56% 1.99% 2.13% 0.86 0.62 0.57 0.89 0.64 0.59 Coupon: A bond's coupon is the periodic interest payment made to the holder of the fixed income security during the life of the bond. Coupon payments can be made monthly, quarterly, or annually. Book Yield: The Book Yield is that rate of return that will make the present value of the future cash flows of a fixed income security equal to the price paid for the security. This assumes that the security will be held to its maturity. Current Yield: Annual rate of return on an investment expressed as a percentage. Current Yield of a fixed income security is the annualized earnings (coupon) divided by the bond's market value as of the valuation date. One Year Total Yield: The One Year Total Yield or One Year Return represents the portfolio's percentage change over a year's time, factoring in interest payments, changes in market value and reinvestment of distributions. Weighted Average Yield: The total yield on a bond portfolio divided by the number of bonds contained in it, weighted for the size of each bond so that the yield of large holdings does not drown out the calculation of yields on small holdings. Yield to Maturity: The Yield to Maturity (YTM) or Market Yield to Maturity of a fixed income security is that rate of interest that will make the present value of the future cash flows equal to the market value as of the valuation date, assuming the bond is held to maturity. 3 of 28 ATTACHMENT A May 21, 2019, Item #1.13 City of Poway Monthly Investment Portfolio Report March 31, 2019 LAIF $ 17,903,428 45% 2.44% CalTrust - Short $ 11,050,617 28% 2.55% CalTrust -Medium $ 11,139,326 28% 2.34% CaM Total Externally Managed $ 72,037,391 Mediur Total Internally Managed $ 40,093,371 36% 19% Weighted Average Yield $ 112,130,762 2.44% Days Effective Average Duration - Internal 1 Weighted Average Maturity - Internal 1 CalTrust - Short, 28% Treasury Securities $ 12,473,258 17% 2.02% Instrumentality Securities $ 38,221,348 53% 1.91% Corporate Notes $ 21,342,785 30% 1.99% Total Externally Managed $ 72,037,391 64% Weighted Average Yield 1.95% Years Effective Average Duration - External 0.88 Weighted Average Final Maturity - External 0.92 LAIF CalTrust - Short CalTrust - Medium Treasury Securities Instrumentality Securities Corporate Notes Total Portfolio Assets Corporate Notes, 309 $ 17,903,428 16% 2.44% $ 11,050,617 10% 2.55% $ 11,139,326 10% 2.34% Corporate Note 23% $ 12,473,258 11% 2.02% $ 38,221,348 34% 1.91% $ 21,342,785 19% 1.99% $ 112,130,762 Weighted Average Yield Effective Average Duration - Total Weighted Average Maturity - Total Beginning Balance Ending Balance Assets values shown at Market 2.13% Years 0.57 Instrumentality 0.59 Securities 40% Treasury urities, 17% CalTrust - Short 12% umentality ,)ecurities, 53% CalTrust - Medium $ 110,883,453 $ 112,130,762 Treasury Securities 13% 4 of 28 ATTACHMENT B May 21, 2019, Item #1.13 T O h N O n 2 m z 0 9 CITY OF POWAY March 2019 Part of 160-BNY MELLON Aw FOR PROFESSIONAL CLIENTS ONLY NOT TO BE DISTRIBUTED TO RETAIL CLIENTS THIS DOCUMENT SHOULD NOT BE REPRODUCED IN ANY FORM WITHOUT PRIOR WRITTEN APPROVAL Insight INVESTMENT Cn 01 Contents N AO Fixed income market review 3 Activity and performance summary 4 Recap of securities held 6 Maturity distribution of securities held 7 Securities held 8 GASB 40 - Deposit and investment risk disclosure 14 Securities purchased iE Securities sold and matured 20 Transaction report Additional information 9 kil 22 FIXED INCOME MARKET REVIEW As of March 31, 2019 0 N 00 9 Chart 1: Consumer Price Index: 02/28/2014-02/28/2019 !1 C T ro U 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 Feb -14 Feb -15 Fcb-16 Feb -17 Feb -18 Feb -19 CPI CPI Ex Food and Encrgy Source: Bloomberg Finance LP, March 31, 2019. Chart 2: Treasury yield curve: 03/31/2018 and 03/31/2019 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 3m 6 m 1 yr 2 yr 3 yr 4 yr 5 yr 6 yr 7 yr 8 yr 9 yr 10 yr Source: Bloomberg Finance LP, March 31, 2019. CITY OF POWAY Economic Indicators and Monetary Policy Although interest rates started the month with a stable tone, rates ultimately fell across the curve during March. Weakness in certain economic indicators domestically, continuing political turmoil and softening manufacturing data in Europe, along with dovish comments from the Federal Reserve drove rates lower. The yield on the 2 -year US Treasury note was 2.56% on March 1 and ended the month 30 by lower. The employment report on March 8 disappointed, showing that non-farm payrolls increased by 20,000 compared to market expectations of 180,000 new jobs. Meanwhile the prior month's gain of 304,000 jobs was increased to 311,000. The unemployment rate decreased in February to 3.8% and the underemployment rate fell to 7.3%. Average hourly earnings increased 0.4% in February for an annual gain of 3.4%. On March 12 the February Consumer Price Index data reflected a 0.2% monthly increase which was in line with expectations. On a year -over -year basis, the CPI increased 1.5% in February, compared to the prior reading of 1.6%. February was the first monthly increase in US consumer prices since October, and the modest size of the increase resulted in the smallest annual gain in well over two years. For the prior three months the monthly CPI reading was zero. Excluding the volatile food and energy components, the core CPI increased 0.1% in February for an annual gain of 2.1 %. The prior and expected core CPI readings were both 2.2% on an annual basis. (See Chart 1.) On March 20 the Federal Open Market Committee (FOMC) voted unanimously to hold the Fed funds target rate in a range of 2.25% to 2.50%. The FOMC updated its median policy rate projections to reflect no expected hikes this year, down from two anticipated rate increases projected last quarter. The FOMC still forecasts the next move to be a rate increase, with a single 25 by hike projected in 2020. The FOMC also announced its intention to reduce the pace of its balance sheet reduction and halt the reduction in September. Interest Rate Summary At the end of March, the 3 -month US Treasury bill yielded 2.39%, the 6 -month US Treasury bill yielded 2.43%, the 2 -year US Treasury note yielded 2.26%, the 5 -year US Treasury note yielded 2.23% and the 10 -year US Treasury note yielded 2.41%. (See Chart 2). 0 ACTIVITY AND PERFORMANCE SUMMARY For the period March 1, 2019 - March 31, 2019 CIO0 N aD 9 Opening balance Income received Total receipts Total disbursements Interportfolio transfers Total Interportfolio transfers Realized gain (loss) Total amortization expense Total OID/MKT accretion income Return of capital Closing balance Ending fair value Unrealized gain (loss) Fed Funds Overnight Repo Merrill Lynch 3m US Treas Bill Merrill Lynch 6m US Treas Bill ML 1 Year US Treasury Note ML 2 Year US Treasury Note ML 5 Year US Treasury Note 50,762.18 958,626.73 Comparative Rates of Return (%1 * Twelve * Six month trailing month trailing 2.07 1.14 2.16 1.20 2.13 1.16 2.25 1.21 2.48 1.29 2.61 1.31 2.73 1.32 * rates reflected are cumulative 50,762.18 0.00 958,626.73 0.00 (9,068.47) 13,152.50 0.00 72,255,076.73 72,037,390.94 (217,685.79) * One month 0.20 0.21 0.20 0.20 0.21 0.20 0.20 CITY OF POWAY Detail of Amortized Cost Basis Return Interest Accretion Realized Total earned (amortization) gain (loss) income Corporate Bonds 43,125.92 (3,694.55) Government Agencies 60,213.40 5,581.61 Government Bonds 17,836.80 2,196.97 Total 121,176.12 4,084.03 0.00 39,431.37 0.00 65,795.01 0.00 20,033.77 0.00 125,260.15 Summary of Amortized Cost Basis Return for the Period Total portfolio Interest earned 121,176.12 Accretion (amortization) 4,084.03 Realized gain (loss) on sales 0.00 Total income on portfolio 125,260.15 Average daily amortized cost 72,246,773.16 Period return (%) 0.17 YTD return (%) 0.47 Weighted average final maturity in days 334 4 ACTIVITY AND PERFORMANCE SUMMARY For the period March 1, 2019 - March 31, 2019 0 N 00 Opening balance 70,899,627.90 Income received 50,762.18 Total receipts 50,762.18 Total disbursements 0.00 Interportfolio transfers 958,626.73 Total Interportfolio transfers 958,626.73 Unrealized gain (loss) on security movements 0.00 Return of capital 0.00 Change in fair value for the period 128,374.13 Ending fair value 72,037,390.94 Comparative Rates of Return (0/6) * Twelve * Six Total month trailing month trailing Fed Funds 2.07 1.14 Overnight Repo 2.16 1.20 ICE ML 3m US Treas Bill 2.12 1.17 ICE ML 6m US Treas Bill 2.26 1.27 ICE ML 1 Year US Treasury Note 2.44 1.61 ICE ML US Treasury 1-3 2.72 2.29 ICE ML US Treasury 1-5 3.14 2.96 * rates reflected are cumulative * One month 0.20 0.21 0.22 0.24 0.35 0.61 0.85 CITY OF POWAY Summary of Fair Value Basis Return for the Period Interest earned Change in fair value Total income on portfolio Average daily total value Period return (7) YTD return (%) Weighted average final maturity in days * Total value equals market value and accrued interest Total portfolio 121,176.12 128, 374.13 249,550.25 72,310,065.96 0.35 0.84 334 5 Detail of Fair Value Basis Return Interest Change in Total earned fairvalue income Corporate Bonds 43,125.92 25,663.54 68,789.46 Government Agencies 60,213.40 75,052.50 135,265.90 Government Bonds 17,836.80 27,658.09 45,494.89 Total 121,176.12 128,374.13 249,550.25 Summary of Fair Value Basis Return for the Period Interest earned Change in fair value Total income on portfolio Average daily total value Period return (7) YTD return (%) Weighted average final maturity in days * Total value equals market value and accrued interest Total portfolio 121,176.12 128, 374.13 249,550.25 72,310,065.96 0.35 0.84 334 5 RECAP OF SECURITIES HELD As of March 31, 2019 0 O Historical Amortized Fair value Unrealized Weighted Percent Weighted N cost cost gain (loss) average of average 00 final portfolio effective maturity (days) duration (years) Corporate Bonds 21,528,104.28 21,431,152.79 21,342,784.94 (88,367.85) 281 29.79 0.74 Government Agencies 38,261,387.50 38,326,582.67 38,221,347.50 (105,235.17) 351 52.94 0.93 Government Bonds 12,479,609.39 12,497,341.27 12,473,258.50 (24,082.77) 374 17.27 0.99 72,269,101.17 72,255,076.73 72,037,390.94 (217,685,79) 334 1 oo.o6777777777;W 9 Portfolio diversification (%) ■ Corporate Bonds 29.79 ■ Government Agencies 52.94 ■ Government Bonds 17.27 Total 100.00 I CITY OF POWAY 6 MATURITY DISTRIBUTION OF SECURITIES HELD As of March 31, 2019 20.00 0 E 15.00 N 0 u 00 u 10.00 Maturity Historic cost Percent Under 90 days 9,466,423.60 13.10 90 to 179 days 13,046,803.47 18.05 180 days to1 year 23,404,376.81 32.39 1 to 2 years 19,865,492.75 27.49 2 to 3 years 6,486,004.54 8.98 3 to 4 years 0.00 0.00 4 to 5 years 0.00 0.00 Over 5 years 0.00 0.00 j 25.00 Maturity distribution 5 e 5 5 ea aa� �°'�a�' o l �`L�eaN� `5�ea� R�ea� J�ae� �� aa�� �10 �tio ��o two ell e CITY OF POWAY 20.00 E 15.00 0 u u 10.00 7� o Ln x 5.00 N 0.00 N 0 j W Maturity distribution 5 e 5 5 ea aa� �°'�a�' o l �`L�eaN� `5�ea� R�ea� J�ae� �� aa�� �10 �tio ��o two ell e CITY OF POWAY SECURITIES HELD CITY OFPOWAY As of March 31, 2019 8 N ocusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % 2escription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port 00 purchased (amortization) value (loss) interest cost Corporate Bonds 89236TDE2 1.400 05/20/2019 2,000,000.00 2,006,040.00 2,000,297.54 1,996,776.00 (3,521.54) 0.00 2,566.67 10,188.89 2.78 TOYOTA MOTOR CREDIT CORP 0.00 (178.52) 1,228.00 1.4% 20MAY2019 68389XAGO 5.000 07/08/2019 1,000,000.00 1,038,880.00 1,007,427.37 1,006,143.00 (1,284.37) 0.00 4,583.34 11,527.78 1.44 ORACLE CORP 5%08JUL2019 0.00 (2,273.68) (1,838.00) 037833CB4 1.100 08/02/2019 1,000,000.00 989,640.00 998,441.53 994,939.00 (3,502.53) 0.00 1,008.34 1,741.67 1.37 APPLE INC 1.1 %02AUG2019 0.00 383.23 1,391.00 0258MODP1 2.250 08/15/2019 2,008,000.00 2,025,389.28 2,010,579.73 2,004,823.34 (5,756.39) 0.00 4,141.50 5,773.00 2.80 AMERICAN EXPRESS CREDIT 0.00 (573.27) 1,190.74 2.25% 15AUG2019 48127HAA7 2.200 10/22/2019 1,000,000.00 990,780.00 996,127.98 997,170.00 1,042.02 0.00 2,016.67 9,716.67 1.37 JPMORGAN CHASE & CO 2.2% 0.00 575.05 560.00 220CT2019 90331HM1-4 2.125 10/28/2019 1,900,000.00 1,886,035.00 1,892,085.23 1,895,485.60 3,400.37 0.00 3,701.05 17,159.38 2.61 US BANK NA CINCINNATI 09/28/2019 0.00 1,141.55 2,758.80 2.125%28OCT2019 (CALLABLE 28SEP19) 02665WBZ3 2.000 11/13/2019 1,000,000.00 993,010.00 997,427.77 996,066.00 (1,361.77) 0.00 1,833.34 7,666.67 1.37 AMERICAN HONDA FINANCE 0.00 346.04 497.00 2% 13NOV2019 149121-61`3 2.250 12/01/2019 1,000,000.00 1,011,910.00 1,003,479.16 997,646.00 (5,833.16) 0.00 2,062.50 7,500.00 1.40 CATERPILLAR FINL SERVICE 0.00 (433.09) 903.00 .25% 01 DEC2019 1< N717081EB5 1.700 12/15/2019 1,000,000.00 999,940.00 999,983.79 991,697.00 (8,286.79) 0.00 1,558.34 5,005.56 1.38 3 PFIZER INC 1.7% 15DEC2019 0.00 1.90 (731.00) N O -L17275RAHS O 4.450 01/15/2020 1,000,000.00 1,070,170.00 1,020,532.29 1,013,150.00 (7,382.29) 0.00 4,079.16 9,394.44 1.48 _CISCO SYSTEMS INC 4.45% 0.00 (2,161.29) (1,759.00) g 15JAN2020 j W 8 SECURITIES HELD As of March 31, 2019 W ocusip/ Coupon Maturity/ 2jescription Call date 00 Par value or shares Historical cost/ Accrued interest purchased Amortized cost/ Accretion (amortization) Fair value/ Change in fair value Unrealized gain (loss) Interest received Interest earned Total accrued interest CITY OFPOWAY Port cost Corporate Bonds 594918AYO 1.850 02/12/2020 1,500,000.00 1,506,140.00 1,501,820.89 1,492,858.50 (8,962.39) 0.00 2,543.75 3,777.08 2.08 MICROSOFT CORP 1.85% 01/12/2020 0.00 (193.71) 4,098.00 12FEB2020 (CALLABLE 12JAN20) 25468PDP8 1.950 03/04/2020 1,500,000.00 1,504,635.00 1,501,525.21 1,489,921.50 (11,603.71) 14,625.00 2,681.25 2,193.75 2.08 TWDC ENTERPRISES 18 CORP 0.00 (137.00) 540.00 1.95% 04MAR2020 713448CS5 1.850 04/30/2020 1,500,000.00 1,499,655.00 1,499,874.37 1,490,616.00 (9,258.37) 0.00 2,466.67 11,562.50 2.08 PEPSICO INC 1.85% 03/30/2020 0.00 9.66 4,935.00 30APR2020 (CALLABLE 30MAR20) 69353RES3 2.600 07/21/2020 1,000,000.00 1,016,010.00 1,007,226.62 999,150.00 (8,076.62) 0.00 2,383.34 5,055.56 1.41 PNC BANK NA 2.6%21JUL2020 06/21/2020 0.00 (491.61) 3,014.00 (CALLABLE 21 JUN20) 053015AD5 2.250 09/15/2020 1,000,000.00 1,002,630.00 1,001,320.33 994,303.00 (7,017.33) 11,250.00 2,062.50 1,000.00 1.39 AUTOMATIC DATA 08/15/2020 0.00 (80.02) 562.00 PROCESSING 2.25% 15SEP2020 (CALLABLE 15AUG20) 191216BT6 1.875 10/27/2020 2,000,000.00 1,987,240.00 1,993,002.98 1,982,040.00 (10,962.98) 0.00 3,437.50 16,041.67 2.75 COCA-COLA CO/THE 1.875% 0.00 370.21 8,314.00 270CT2020 Total Corporate Bonds '= " "' " '" 21,408,000.00 21,528,104.28 21,431,152.79 21,342,784.94 (88,367.85) 25,875 0043,125.92 125,304.62 29.79 0.00 (3,694.55) 25,663.54 ,...._:...:. .� -ALL Government Agencies N t3133EEWG1 1.300 04/01/2019 2,000,000.00 1,984,640.00 2,000,000.00 2,000,000.00 0.00 0.00 2,383.33 13,000.00 2.75 h1FEDERAL FARM CREDIT BANK 0.00 1,125.67 1,880.00 � 1.3% 01 APR2019 " 3134G9LD7 rt 1.250 05/24/2019 2,000,000.00 2,000,000.00 2,000,000.00 1,996,500.00 (3,500.00) 0.00 2,291.66 8,819.44 2.77 M FREDDIE MAC 1.25% 0.00 0.00 1,680.00 24MAY2019 CALLABLE #0001 L w SECURITIES HELD CITY OF POWAY Interest Total % earned accrued As of March 31, 2019 interest cost 2,177.08 6,333.33 1.38 1,301.67 3,471.11 1.38 985.42 2,388.89 1.38 1,145.83 ocusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest 25escription Call date shares Accrued interest Accretion Change in fair gain received 00 1,031.25 3,812.50 purchased (amortization) value (loss) Government Agencies 3130AEJ84 2.375 06/25/2019 1,000,000.00 1,000,060.00 1,000,014.13 999,970.00 (44.13) 0.00 FEDERAL HOME LOAN BANK 0.00 (4.98) 180.00 2.375% 25JUN2019 3133EHPW7 1.420 07/03/2019 1,000,000.00 998,942.00 999,860.04 997,650.00 (2,210.04) 0.00 FEDERAL FARM CREDIT BANK 0.00 45.15 1,030.00 1.42%03JUL2019 (CALLABLE 09AP R 19) 3135GOL76 1.075 07/11/2019 1,000,000.00 1,000,000.00 1,000,000.00 996,160.00 (3,840.00) 0.00 FANNIE MAE 1.075% 04/11/2019 0.00 0.00 1,340.00 11JUL2019 CALLABLE 3134G9Q75 1.250 07/26/2019 1,000,000.00 997,000.00 999,502.86 995,920.00 (3,582.86) 0.00 FREDDIE MAC 1.25% 04/26/2019 0.00 128.57 1,100.00 26JUL2019 (CALLABLE 26APR19) #0000 3137EADK2 1.250 08/01/2019 1,000,000.00 1,006,100.00 1,000,628.71 995,980.00 (4,648.71) 0.00 FREDDIE MAC 1.25% 0.00 (155.87) 1,250.00 01AUG2019 3130AEU73 2.375 08/27/2019 2,000,000.00 1,998,360.00 1,999,339.51 1,999,240.00 (99.51) 0.00 FEDERAL HOME LOAN BANK 0.00 134.80 420.00 2.375% 27AU G2019 3136636X8 1.140 09/13/2019 2,000,000.00 1,998,000.00 1,999,698.15 1,988,140.00 (11,558.15) 11,400.00 FANNIE MAE 1.14% 13SEP2019 06/13/2019 0.00 55.56 2,800.00 (CALLABLE 13JUN19) CU3134G3N30 1.500 10/03/2019 1,000,000.00 993,500.00 998,158.67 995,030.00 (3,128.67) 0.00 1< FREDDIE MAC 1.5% s030CT2019 CALLABLE 0.00 301.86 1,170.00 C 135GOR39 1.000 10/24/2019 1,000,000.00 983,180.00 996,372.85 991,827.00 (4,545.85) 0.00 "FANNIE MAE 1%240CT2019 0.00 533.40 1,754.00 CD 3130AA2HO 1.125 11/29/2019 1,000,000.00 997,150.00 999,380.77 991,720.00 (7,660.77) 0.00 3 FEDERAL HOME LOAN BANK 0.00 77.72 2,080.00 *k1.125% 29NOV2019 L w CITY OF POWAY Interest Total % earned accrued Port interest cost 2,177.08 6,333.33 1.38 1,301.67 3,471.11 1.38 985.42 2,388.89 1.38 1,145.83 2,256.94 1.38 1,145.83 2,083.33 1.39 4,354.17 4,486.11 2.77 2,090.00 1,140.00 2.76 1,375.00 7,416.67 1.37 916.67 4,361.11 1.36 1,031.25 3,812.50 1.38 10 SECURITIES HELD CITY OFPOWAY As of March 31, 2019 CA oCusip/ description 00 Coupon Maturity/ Call date Par value or shares Historical cost/ Accrued interest purchased Amortized cost/ Accretion (amortization) Fair value/ Change in fair value Unrealized gain (loss) Interest received Interest earned Total accrued interest % Port cost Government Agencies 3136G4DA8 1.200 12/30/2019 1,000,000.00 998,250.00 999,592.32 991,120.00 (8,472.32) 0.00 1,066.67 3,000.00 1.38 FANNIE MAE 1.2% 30DEC2019 06/30/2019 0.00 45.30 1,680.00 (CALLABLE 30JUN19) #0001 3133EGLA1 1.170 01/13/2020 2,000,000.00 1,999,780.00 1,999,948.03 1,981,320.00 (18,628.03) 0.00 2,145.00 5,070.00 2.77 FEDERAL FARM CREDIT BANK 0.00 5.51 4,460.00 1.17% 13JAN2020 (CALLABLE 09APR19) 3137EAEE5 1.500 01/17/2020 3,000,000.00 2,957,514.00 2,972,363.35 2,977,461.00 5,097.65 0.00 4,125.00 9,250.00 4.09 FREDDIE MAC 1.5% 17JAN2020 0.00 2,888.85 4,731.00 3130AECJ7 2.625 05/28/2020 1,500,000.00 1,497,100.50 1,498,032.48 1,503,232.50 5,200.02 0.00 3,609.38 13,453.13 2.07 FEDERAL HOME LOAN BANK 0.00 141.21 1,999.50 2.625% 28MAY2020 3130ABY34 1.613 05/29/2020 2,000,000.00 1,994,820.00 1,997,683.65 1,981,040.00 (16,643.65) 0.00 2,957.17 10,932.56 2.76 FEDERAL HOME LOAN BANK 0.00 165.85 4,380.00 1.613% 29MAY2020 3136G4KD4 1.750 06/29/2020 1,900,000.00 1,899,525.00 1,899,825.76 1,884,230.00 (15,595.76) 0.00 3,047.91 8,497.22 2.63 FANNIE MAE 1.75% 29JUN2020 06/29/2019 0.00 11.65 4,845.00 (CALLABLE 29JUN 19) 3133EHYM9 1.500 09/14/2020 2,000,000.00 1,993,720.00 1,996,938.87 1,976,280.00 (20,658.87) 15,000.00 2,750.00 1,416.67 2.76 FEDERAL FARM CREDIT BANK 0.00 175.26 8,380.00 1.5% 145EP2020 3130AEWA4 2.625 10/01/2020 2,000,000.00 1,990,580.00 1,992,621.91 2,008,336.00 15,714.09 0.00 4,812.50 26,250.00 2.75 EFEDERAL HOME LOAN BANK 0.00 394.77 6,818.00 K 2.625% 01 OCT2020 s3133EGM51 1.650 12/01/2020 1,000,000.00 996,971.00 998,733.17 988,820.00 (9,913.17) 0.00 1,512.50 5,500.00 1.38 NFEDERAL FARM CREDIT BANK 0.00 63.23 4,660.00 C)1.65% 01 DEC2020 �O 3130A31JQ5 1.875 12/11/2020 1,000,000.00 997,820.00 998,783.58 992,107.00 (6,676.58) 0.00 1,718.75 5,729.17 1.38 cD FEDERAL HOME LOAN BANK 0.00 59.73 3,940.00 1.875% 11 DEC2020 L w is SECURITIES HELD As of March 31, 2019 pcusip/ Coupon Maturity/ 2jescription Call date 00 Par value or shares Historical cost/ A Accrued interest purchased Government Agencies 2,291.66 3,472.22 1.38 3133EKAJS 2.500 02/11/2021 1,000,000.00 999,265.00 FEDERAL FARM CREDIT BANK 0.00 2.5% 11 FEB2021 (939.93) 0.00 141.11 3133EJJD2 2.540 04/05/2021 1,000,000.00 1,004,390.00 FEDERAL FARM CREDIT BANK (12,276.67) 2.54%05APR2021 986,210.17 989,630.00 3,419.83 313379RB7 1.875 06/11/2021 1,000,000.00 985,600.00 FEDERAL HOME LOAN BANK 5,210.00 0.00 1.875% 11 JUN2021 999,069.03 3133EKCBO 2.500 07/01/2021 1,000,000.00 999,030.00 FEDERAL FARM CREDIT BANK 1.38 34.44 0.00 2.5% 01JUL2021 3130AABG2 1.875 11/29/2021 1,000,000.00 990,090.00 FEDERAL HOME LOAN BANK 208.34 6,354.17 (6,145.83) 1.875% 29NOV2021 (730.00) Total Government Agencies 38,400,000.00 31W.50 11jW1,347.50 1.05 235.17, �- 26 400.00 (18,422.50) Government Bonds 52.94 6,812.94 74,518.5. 912828D23 1.625 04/30/2019 1,500,000.00 1,491,855.47 USA TREASURY 1.625% 1,499,108.26 1,499,002.50 0.00 30APR2019 2,087.36 10,167.47 2.06 Lw912828R85 0.875 06/15/2019 1,000,000.00 983,828.13 K USA TREASURY 0.875% 0.00 N15JUN2019 (754.07) 0.00 745.19 3 1.36 1,031.54 1,053.00 N912828WS5 1.625 06/30/2019 1,000,000.00 994,492.19 .USATREASURY 1.625% 999,030.54 997,773.00 0.00 (030JUN2019 1,391.58 4,040.06 1.38 •g912828F39 1.750 09/30/2019 2,000,000.00 2,017,265.62 3 USA TREASURY 1.75% 0.00 *h30SEP2019 L w mortized cost/ Fair value/ Unrealized Interest Accretion Change in fair gain received (amortization) value (loss) CITY OF POWAY Interest Total % earned accrued Port interest cost 999,313.11 1,003,490.00 4,176.89 0.00 2,291.66 3,472.22 1.38 30.71 3,570.00 1,004,359.93 1,003,420.00 (939.93) 0.00 141.11 12,417.78 1.39 (30.07) (970.00) 986,210.17 989,630.00 3,419.83 0.00 1,718.75 5,729.17 1.36 523.00 5,210.00 999,069.03 1,003,364.00 4,294.97 0.00 2,083.33 2,083.33 1.38 34.44 4,861.00 990,151.62 989,360.00 (791.62) 0.00 208.34 6,354.17 1.37 61.62 (730.00) 38jW--7 11jW1,347.50 1.05 235.17, �- 26 400.00 55,385.98 178,724.85 52.94 6,812.94 74,518.5. 1,499,108.26 1,499,002.50 (105.76) 0.00 2,087.36 10,167.47 2.06 921.46 1,078.50 997,471.07 996,717.00 (754.07) 0.00 745.19 2,548.08 1.36 1,031.54 1,053.00 999,030.54 997,773.00 (1,257.54) 0.00 1,391.58 4,040.06 1.38 330.26 703.00 2,003,771.14 1,992,734.00 (11,037.14) 0.00 2,980.77 17,500.00 2.79 (638.82) 2,030.00 12 SECURITIES HELD As of March 31, 2019 150CT2021 I CITY OF POWAY Interest Total earned accrued Port interest cost 1,277.47 4,986.26 1.39 2,843.07 2,843.07 2.06 2,569.06 3,646.41 2.75 1,809.75 10,625.00 1.37 2,132.55 19,785.37 2.10 Tota Govenun IILDU Ub Iz,!)UU,000.UU 1 Z,4/Y,0UY.3Y 12,49/,341.27 12,473,258.50 (24,082.77) 0.00 17,836.80 76,141.72 17.27 (17,652.82) 2,196.97 27,658.09 9 01 N N O j w CD j (hi 13 V OCusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest 25escription Call date shares Accrued interest Accretion Change in fair gain received 0o purchased (amortization) value (loss) Government Bonds 912828G61 1.500 11/30/2019 1,000,000.00 1,002,968.75 1,000,799.53 993,750.00 (7,049.53) 0.00 USA TREASURY 1.5% 0.00 (101.58) 1,445.00 30NOV2019 9128283Y4 2.250 02/29/2020 1,500,000.00 1,492,148.44 1,495,200.23 1,497,891.00 2,690.77 0.00 USA TREASURY 2.25% 0.00 444.16 2,344.50 29FEB2020 9128282Q2 1.500 08/15/2020 2,000,000.00 1,990,156.25 1,995,145.68 1,975,938.00 (19,207.68) 0.00 USA TREASURY 1.5% 0.00 299.17 6,016.00 15AUG2020 912828F21 2.125 09/30/2021 1,000,000.00 991,015.63 991,319.54 996,719.00 5,399.46 0.00 US TREASURY N/B 2.125% 0.00 294.41 6,133.00 30SEP2021 91282851`3 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,515,495.28 1,522,734.00 7,238.72 0.00 USA TREASURY 2.875% (17,652.82) (383.63) 6,855.09 150CT2021 I CITY OF POWAY Interest Total earned accrued Port interest cost 1,277.47 4,986.26 1.39 2,843.07 2,843.07 2.06 2,569.06 3,646.41 2.75 1,809.75 10,625.00 1.37 2,132.55 19,785.37 2.10 Tota Govenun IILDU Ub Iz,!)UU,000.UU 1 Z,4/Y,0UY.3Y 12,49/,341.27 12,473,258.50 (24,082.77) 0.00 17,836.80 76,141.72 17.27 (17,652.82) 2,196.97 27,658.09 9 01 N N O j w CD j (hi 13 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE As of March 31, 2019 00 OCusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio N date rating rating shares cost hist cost United States Treasury Note/Bond CITY OF POWAY Market % Portfolio Effective value mkt value dur (yrs) 912828D23 USA TREASURY 1.625% 1.625 04/30/2019 AA+ Aaa 1,500,000.00 1,491,855.47 2.06 1,499,002.50 2.08 0.09 912828885 USA TREASURY 0.875% 0.875 06/15/2019 AA+ Aaa 1,000,000.00 983,828.13 1.36 996,717.00 1.38 0.21 912828WS5 USA TREASURY 1.625% 1.625 06/30/2019 AA+ Aaa 1,000,000.00 994,492.19 1.38 997,773.00 1.39 0.25 912828F39 USA TREASURY 1.75% 1.750 09/30/2019 AA+ Aaa 2,000,000.00 2,017,265.62 2.79 11992,734.00 2.77 0.50 912828661 USA TREASURY 1.5% 1.500 11/30/2019 AA+ Aaa 1,000,000.00 1,002,968.75 1.39 993,750.00 1.38 0.66 9128283Y4 USA TREASURY 2.25% 2.250 02/29/2020 AA+ Aaa 1,500,000.00 1,492,148.44 2.06 1,497,891.00 2.08 0.91 9128282Q2 USA TREASURY 1.5% 1.500 08/15/2020 AA+ Aaa 2,000,000.00 1,990,156.25 2.75 1,975,938.00 2.74 1.34 912828F21 US TREASURY N/B 2.125% 2.125 09/30/2021 AA+ Aaa 1,000,000.00 991,015.63 1.37 996,719.00 1.38 2.42 91282851`3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 2.10 1,522,734.00 2.11 2.41 Issuer total 12,500,000.00 12,479,609.39 17.27 12,473,258.50 17.31 0.99 Federal Home Loan Banks 3130AEJ84 FEDERAL HOME LOAN 2.375 06/25/2019 AA+ Aaa 1,000,000.00 1,000,060.00 1.38 999,970.00 1.39 0.24 3130AEU73 FEDERAL HOME LOAN 2.375 08/27/2019 AA+ Aaa 2,000,000.00 1,998,360.00 2.77 1,999,240.00 2.78 0.41 3130AA2H0 FEDERAL HOME LOAN 1.125 11/29/2019 AA+ Aaa 1,000,000.00 997,150.00 1.38 991,720.00 1.38 0.66 3130AEC17 FEDERAL HOME LOAN 2.625 05/28/2020 AA+ Aaa 1,500,000.00 1,497,100.50 2.07 1,503,232.50 2.09 1.12 3130ABY34 FEDERAL HOME LOAN 1.613 05/29/2020 AA+ Aaa 2,000,000.00 1,994,820.00 2.76 1,981,040.00 2.75 1.14 3130AEWA4 FEDERAL HOME LOAN 2.625 10/01/2020 AA+ Aaa 2,000,000.00 1,990,580.00 2.75 2,008,336.00 2.79 1.46 e130A3UQ5 FEDERAL HOME LOAN 1.875 12/11/2020 AA+ Aaa 1,000,000.00 997,820.00 1.38 992,107.00 1.38 1.64 �<313379RB7 FEDERAL HOME LOAN 1.875 06/11/2021 AA+ Aaa 1,000,000.00 985,600.00 1.36 989,630.00 1.37 2.12 IV �3130AABG2 FEDERAL HOME LOAN 1.875 11/29/2021 AA+ Aaa 1,000,000.00 990,090.00 1.37 989,360.00 1.37 2.56 w+ olssuer total 12,500,000.00 12,451,580.50 17.23 12,454,635.50 17.29 1.19 m =Federal Farm Credit Banks CD B3133EHPW7 FEDERAL FARM CREDIT 1.420 07/03/2019 AA+ Aaa 1,000,000.00 998,942.00 1.38 997,650.00 1.38 0.26 133EGLA1 FEDERAL FARM CREDIT 1.170 01/13/2020 AA+ Aaa 2,000,000.00 1,999,780.00 2.77 1,981,320.00 2.75 0.78 j w 14 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OFPOWAY As of March 31, 2019 3 ocusip Description N Coupon Maturity Call date date S&P rating Moody rating Par value or shares Historical % Portfolio cost hist cost Market value % Portfolio mkt value Effective dur (yrs) Federal Farm Credit Banks FREDDIE MAC 1.25% 1.250 05/24/2019 AA+ Aaa 2,000,000.00 2,000,000.00 2.77 1,996,500.00 2.77 3133EHYM9 FEDERAL FARM CREDIT 1.500 09/14/2020 AA+ Aaa 2,000,000.00 1,993,720.00 2.76 1,976,280.00 2.74 1.44 3133EGM51 FEDERAL FARM CREDIT 1.650 12/01/2020 AA+ Aaa 1,000,000.00 996,971.00 1.38 988,820.00 1.37 1.63 3133EKAJ5 FEDERAL FARM CREDIT 2.500 02/11/2021 AA+ Aaa 1,000,000.00 999,265.00 1.38 1,003,490.00 1.39 1.82 3133EJJD2 FEDERAL FARM CREDIT 2.540 04/05/2021 AA+ Aaa 1,000,000.00 1,004,390.00 1.39 1,003,420.00 1.39 1.92 3133EKCBO FEDERAL FARM CREDIT 2.500 07/01/2021 AA+ Aaa 1,000,000.00 999,030.00 1.38 1,003,364.00 1.39 2.18 Issuer total 7,954,114.00 11.01 7,960,891.00 11.05 9,000,000.00 8,992,098.00 12.44 8,954,344.00 12.43 1.36 Federal Home Loan Mortgage Corp 3134G9LD7 FREDDIE MAC 1.25% 1.250 05/24/2019 AA+ Aaa 2,000,000.00 2,000,000.00 2.77 1,996,500.00 2.77 0.15 3134G9Q75 FREDDIE MAC 1.25% 1.250 07/26/2019 04/26/2019 AA+ Aaa 1,000,000.00 997,000.00 1.38 995,920.00 1.38 0.32 3137EADK2 FREDDIE MAC 1.25% 1.250 08/01/2019 AA+ Aaa 1,000,000.00 1,006,100.00 1.39 995,980.00 1.38 0.34 3134G3N30 FREDDIE MAC 1.5% 1.500 10/03/2019 AA+ Aaa 1,000,000.00 993,500.00 1.37 995,030.00 1.38 0.50 3137EAEE5 FREDDIE MAC 1.5% 1.500 01/17/2020 AA+ Aaa 3,000,000.00 2,957,514.00 4.09 2,977,461.00 4.13 0.79 Issuertotal N3136G4KD4 FANNIE MAE 1.75% 1.750 06/29/2020 06/29/2019 AA+ 8,000,000.00 7,954,114.00 11.01 7,960,891.00 11.05 0.48 Federal National Mortgage Association 3135GOL76 FANNIE MAE 1.075% 1.075 07/11/2019 04/11/2019 AA+ Aaa 1,000,000.00 1,000,000.00 1.38 996,160.00 1.38 0.28 3136G36X8 FANNIEMAE1.14% 1.140 09/13/2019 06/13/2019 AA+ Aaa 2,000,000.00 1,998,000.00 2.76 1,988,140.00 2.76 0.45 3135GOR39 FANNIEMAE1% 1.000 10/24/2019 AA+ Aaa 1,000,000.00 983,180.00 1.36 991,827.00 1.38 0.56 .3136G4DA8 FANNIE MAE 1.2% 1.200 12/30/2019 06/30/2019 AA+ Aaa 1,000,000.00 998,250.00 1.38 991,120.00 1.38 0.74 1< N3136G4KD4 FANNIE MAE 1.75% 1.750 06/29/2020 06/29/2019 AA+ Aaa 1,900,000.00 1,899,525.00 2.63 1,884,230.00 2.62 1.16 3 r.jssuer total 6,900,000.00 6,878,955.00 9.52 6,851,477.00 9.51 0.68 0 PAmerican Express Credit Corp p0258MODP1 AMERICAN EXPRESS 2.250 08/15/2019 A- A2 2,008,000.00 2,025,389.28 2.80 2,004,823.34 2.78 0.38 3 *Wssuertotal 2,008,000.00 2,025,389.28 2.80 2,004,823.34 2.78 0.38 C4 15 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OFPOWAY As of March 31, 2019 1,500,000.00 1,506,140.00 2.08 1,492,858.50 2.07 0.85 PepsiCo Inc N e13448CS5 PEPSICO INC 1.85% 1.850 04/30/2020 03/30/2020 A+ Al 1,500,000.00 1,499,655.00 2.08 1,490,616.00 2.07 1.04 2) O `< Issuer tota1 1,500,000.00 1,499,655.00 2.08 1,490,616.00 ocusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N 00 date rating rating shares cost hist cost value mkt value dur (yrs) Federal Farm Credit Bank a5468PDP8 TWDC ENTERPRISES 18 1.950 03/04/2020 A A2 1,500,000.00 1,504,635.00 2.08 1,489,921.50 2.07 0.96 to 3133EEWG1 FEDERAL FARM CREDIT 1.300 04/01/2019 AA+ Aaa 2,000,000.00 1,984,640.00 2.75 2,000,000.00 2.78 0.01 Issuer total c=D 2,000,000.00 1,984,640.00 2.75 2,000,000.00 2.78 0.01 Toyota Motor Credit Corp 89236TDE2 TOYOTA MOTOR CREDIT 1.400 05/20/2019 AA- Aa3 2,000,000.00 2,006,040.00 2.78 1,996,776.00 2.77 0.14 Issuer total W 2,000,000.00 2,006,040.00 2.78 1,996,776.00 2.77 0.14 Coca-Cola Co/The 191216BT6 COCA-COLA CO/THE 1.875 10/27/2020 A+ Al 2,000,000.00 1,987,240.00 2.75 1,982,040.00 2.75 1.52 Issuer total 2,000,000.00 1,987,240.00 2.75 1,982,040.00 2.75 1.52 US Bank NA/Cincinnati OH 90331HML4 US BANK NA CINCINNATI 2.125 10/28/2019 09/28/2019 AA- Al 1,900,000.00 1,886,035.00 2.61 1,895,485.60 2.63 0.56 Issuer total 1,900,000.00 1,886,035.00 2.61 1,895,485.60 2.63 0.56 Microsoft Corp 594918AYO MICROSOFT CORP 1.85% 1.850 02/12/2020 01/12/2020 AAA Aaa 1,500,000.00 1,506,140.00 2.08 1,492,858.50 2.07 0.85 Issuer total 1,500,000.00 1,506,140.00 2.08 1,492,858.50 2.07 0.85 PepsiCo Inc e13448CS5 PEPSICO INC 1.85% 1.850 04/30/2020 03/30/2020 A+ Al 1,500,000.00 1,499,655.00 2.08 1,490,616.00 2.07 1.04 2) `< Issuer tota1 1,500,000.00 1,499,655.00 2.08 1,490,616.00 2.07 1.04 N 3 NTWDC Enterprises 18 Corp a5468PDP8 TWDC ENTERPRISES 18 1.950 03/04/2020 A A2 1,500,000.00 1,504,635.00 2.08 1,489,921.50 2.07 0.96 to ssuer total 1,500,000.00 1,504,635.00 2.08 1,489,921.50 2.07 0.96 c=D j W 16 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE ITYOFL As of March 31, 2019 1,000,000.00 990,780.00 1.37 997,170.00 1.38 0.55 American Honda Finance Corp N �02665WBZ3 AMERICAN HONDA 2.000 11/13/2019 sv A A2 1,000,000.00 993,010.00 1.37 996,066.00 1.38 0.61 K Issuer total ocusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) Cisco Systems Inc 989,640.00 1.37 994,939.00 1.38 0.34 co 17275RAH5 CISCO SYSTEMS INC 4.450 01/15/2020 AA- Al 1,000,000.00 1,070,170.00 1.48 1,013,150.00 1.41 0.78 Issuer tota I 1,000,000.00 1,070,170.00 1.48 1,013,150.00 1.41 0.78 Oracle Corp j 68389XAGO ORACLE CORP 5% 5.000 07/08/2019 AA- Al 1,000,000.00 1,038,880.00 1.44 1,006,143.00 1.40 0.27 Issuer total 1,000,000.00 1,038,880.00 1.44 1,006,143.00 1.40 0.27 PNC Bank NA 69353RES3 PNCBANKNA2.6% 2.600 07/21/2020 06/21/2020 A A2 1,000,000.00 1,016,010.00 1.41 999,150.00 1.39 1.23 Issuer total 1,000,000.00 1,016,010.00 1.41 999,150.00 1.39 1.23 Caterpillar Financial Services Corp 149121-61`3 CATERPILLAR FINL 2.250 12/01/2019 A A3 1,000,000.00 1,011,910.00 1.40 997,646.00 1.38 0.66 Issuer total 1,000,000.00 1,011,910.00 1.40 997,646.00 1.38 0.66 1PMorgan Chase & Co 48127HAA7 JPMORGAN CHASE & CO 2.200 10/22/2019 A- A2 1,000,000.00 990,780.00 1.37 997,170.00 1.38 0.55 Issuer total 1,000,000.00 990,780.00 1.37 997,170.00 1.38 0.55 American Honda Finance Corp �02665WBZ3 AMERICAN HONDA 2.000 11/13/2019 sv A A2 1,000,000.00 993,010.00 1.37 996,066.00 1.38 0.61 K Issuer total 1,000,000.00 993,010.00 1.37 996,066.00 1.38 0.61 N 3 NApple Inc !2037833CB4 APPLE INC 1.1% 1.100 08/02/2019 AA+ Aal 1,000,000.00 989,640.00 1.37 994,939.00 1.38 0.34 co Issuertotal 1,000,000.00 989,640.00 1.37 994,939.00 1.38 0.34 D j W 17 GASB 40 - DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OFPOWAY As of March 31, 2019 N N ocusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) Automatic Data Processing Inc 053015AD5 AUTOMATIC DATA 2.250 09/15/2020 08/15/2020 AA Aa3 1,000,000.00 1,002,630.00 1.39 994,303.00 1.38 1.39 Issuer total 1,000,000.00 1,002,630.00 1.39 994,303.00 1.38 1.39 Pfizer Inc 717081 EB5 PFIZER INC 1.7% 1.700 12/15/2019 AA Al 1,000,000.00 999,940.00 1.38 991,697.00 1.38 0.70 Issuer total 1,000,000.00 999,940.00 1.38 991,697.00 1.38 0.70 72,308,000.00 72,269,101.17 100.00 72037 •o®s ,e 9 18 SECURITIES PURCHASED For the period March 1, 2019 - March 31, 2019 N w OCusip / Description / Broker Trade date N Settle date 00 Government Agencies Coupon Maturity/ Par value or Unit cost Call date shares CITY OF POWAY Principal Accrued cost interest purchased 3130AABG2 03/25/2019 1.875 11/29/2021 1,000,000.00 99.01 (990,090.00) FEDERAL HOME LOAN BANK 1.875% 29NOV2021 03/27/2019 WELLS FARGO BANK, N.A. 3133EJJD2 03/26/2019 2.540 04/05/2021 1,000,000.00 100.44 (1,004,390.00) FEDERAL FARM CREDIT BANK 2.54% 05APR2021 03/29/2019 WELLS FARGO BANK, N.A. Total Government Agencies Y :�v ��� w a0 ` ` (1,994,480.00) xC3 Government Bonds 9128285F3 03/08/2019 2.875 10/15/2021 1,500,000.00 101.06 (1,515,878.91) USA TREASURY 2.875% 150CT2021 03/13/2019 SOCIETE GENERALE Total Government Bonds 1,500,000.00 9 (6,145.83) (12,276.67) (18,422.50) (17,652.82) (3,510, 8.91 35) (36,07 5.32) L. 19 SECURITIES SOLD AND MATURED CITY OFPOWAY For the period March 1, 2019 - March 31, 2019 N ocusip/ Trade date Coupon Maturity/ Par value or Historical cost Amortized cost Price Fair value at Realized Accrued Interest Interest 25escription/ Settle date Call date shares at sale or maturity sale or maturity / gain interest received earned broker /Accr (amort) Chg.in fair value (loss) sold Government Agencies 3136G1FY0 03/13/2019 1.375 (1,500,000.00) 1,514,175.00 1,500,000.00 0.00 1,500,000.00 0.00 0.00 10,312.50 859.37 FEDERAL NATIONAL 03/13/2019 (167.37) 555.00 MORTGAGE ASSOC 1.375% 03-13-2019 3137EACA5 03/27/2019 3.750 (1,000,000.00) 1,011,191.28 1,000,000.00 0.00 1,000,000.00 0.00 0.00 18,750.00 3,020.83 FREDDIE MAC 3.75% 03/27/2019 (1,063.96) (991.00) 27MAR2019 3134G9WF0 03/29/2019 1.100 (1,000,000.00) 1,000,000.00 1,000,000.00 0.00 1,000,000.00 0.00 0.00 5,500.00 947.22 FREDDIE MAC 1.1% 03/29/2019 0.00 970.00 29MAR2019 CALLABLE #0000 Total (Government Agencies) (3,500,000.00) 3,525,366.28 3,500,000.00 3,500,000.00 0.00 0.00 34,562.50 4,827.42 (1,231.33) 534.00 9 2C TRANSACTION REPORT For the period March 1, 2019 - March 31, 2019 N Cn OTrade date Cusip Transaction Sec type Description ;3ettle date m Maturity Par value or Realized shares gain(loss) 03/04/2019 25468PDP8 Income Corporate Bonds TWDC ENTERPRISES 18 CORP 03/04/2020 1,500,000.00 03/04/2019 0.00 0.00 10,312.50 10,312.50 0.00 1,500,000.00 03/08/2019 9128285F3 Bought Government Bonds USA TREASURY 2.875% 10/15/2021 1,500,000.00 03/13/2019 15,000.00 15,000.00 0.00 0.00 11,250.00 11,250.00 03/13/2019 3136G1FY0 Income Government Agencies FEDERAL NATIONAL 03/13/2019 1,500,000.00 03/13/2019 0.00 0.00 18,750.00 18,750.00 0.00 1,000,000.00 03/13/2019 3136G1 FY0 Capital Change Government Agencies FEDERAL NATIONAL 03/13/2019 (1,500,000.00) 03/13/2019 0.00 1,000,000.00 03/13/2019 3136G36X8 Income Government Agencies FANNIE MAE 1.14% 13SEP2019 09/13/2019 2,000,000.00 03/13/2019 03/14/2019 3133EHYM9 Income Government Agencies FEDERAL FARM CREDIT BANK 09/14/2020 2,000,000.00 03/14/2019 03/15/2019 053015AD5 Income Corporate Bonds AUTOMATIC DATA PROCESSNG 09/15/2020 1,000,000.00 03/15/2019 03/25/2019 3130AABG2 Bought Government Agencies FEDERAL HOME LOAN BANK 11/29/2021 1,000,000.00 03/27/2019 03/26/2019 3133EJJD2 Bought Government Agencies FEDERAL FARM CREDIT BANK 04/05/2021 1,000,000.00 03/29/2019 03/27/2019 3137EACA5 Income Government Agencies FREDDIE MAC 3.75% 03/27/2019 1,000,000.00 03/27/2019 03/27/2019 3137EACA5 Capital Change Government Agencies FREDDIE MAC 3.75% 03/27/2019 (1,000,000.00) 03/27/2019 03/29/2019 3134G9WF0 Income Government Agencies FREDDIE MAC 1.1 % 29MAR2019 03/29/2019 1,000,000.00 03/29/2019 03/29/2019 3134G9WF0 Capital Change Government Agencies FREDDIE MAC 1.1 % 29MAR2019 03/29/2019 (1,000,000.00) 3/29/2019 N N O t0 rr fD W CITY OF POWAY Principal Interest Transaction total 0.00 0.00 14,625.00 14,625.00 0.00 (1,515,878.91) (17,652.82) (1,533,531.73) 0.00 0.00 10,312.50 10,312.50 0.00 1,500,000.00 0.00 1,500,000.00 0.00 0.00 11,400.00 11,400.00 0.00 0.00 15,000.00 15,000.00 0.00 0.00 11,250.00 11,250.00 0.00 (990,090.00) (6,145.83) (996,235.83) 0.00 (1,004,390.00) (12,276.67) (1,016,666.67) 0.00 0.00 18,750.00 18,750.00 0.00 1,000,000.00 0.00 1,000,000.00 0.00 0.00 5,500.00 5,500.00 0.00 1,000,000.00 0.00 1,000,000.00 21 ADDITIONAL INFORMATION CITY OF POWAY As of March 31, 2019 past performance is not a guide to future performance. The value of investments and any income from them will fluctuate and is not guaranteed (this may partly be due to exchange rate changes) and investors may not get Aback the amount invested. Transactions in foreign securities may be executed and settled in local markets. Performance comparisons will be affected by changes in interest rates. Investment returns fluctuate due to changes Ih market conditions. Investment involves risk, including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. The information contained herein is for pour reference only and is being provided in response to your specific request and has been obtained from sources believed to be reliable, however, no representation is made regarding its accuracy or completeness. This document must not be used for the purpose of an offer or solicitation in anyjurisdiction or in any circumstances in which such offer or solicitation is unlawful or otherwise not permitted. This document should not be duplicated, amended, or forwarded to a third party without consent from Insight. This is a marketing document intended for professional clients only and should not be made available to or relied upon by retail clients Investment advisory services in North America are provided through two different SEC -registered investment advisers using the brand Insight Investment: Insight North America LLC (INA) and Insight Investment International Limited (IIIL). The North American investment advisers are associated with a broader group of global investment managers that also (individually and collectively) use the corporate brand Insight Investment and may be referred to as Insight, Insight Group or Insight Investment. INA is an investment adviser registered with the Securities and Exchange Commission (SEC), under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. You may request, without charge, additional information about Insight. Moreover, specific information relating to Insights strategies, including investment advisory fees, may be obtained from INA's Form ADV Part 2A, which is available without charge upon request. Where indicated, performance numbers used in the analysis are gross returns. The performance reflects the reinvestment of all dividends and income. INA charges management fees on all portfolios managed and these fees will reduce the returns on the portfolios. For example, assume that $30 million is invested in an account with INA, and this account achieves a 5.0% annual return compounded monthly, gross of fees, for a period of five years. At the end of five years that account would have grown to $38,500,760 before the deduction of management fees. Assuming management fees of 0.25% per year are deducted monthly from the account, the value at the end of the five year period would be $38,022,447. Actual fees for new accounts are dependent on size and subject to negotiation. INA's investment advisory fees are discussed in Part 2A of its Form ADV. Unless otherwise stated, the source of information is Insight. Any forecasts or opinions are Insights own at the date of this document (or as otherwise specified) and may change. Material in this publication is for general information only and is not advice, investment advice, or the recommendation of any purchase or sale of any security. Insight makes no implied or expressed recommendations concerning the manner in which an account should or would be handled, as appropriate investment strategies depend upon specific investment guidelines and objectives and should not be construed to be an assurance that any particular security in a strategy will remain in any fund, account, or strategy, or that a previously held security will not be repurchased. It should not be assumed that any of the security transactions or holdings referenced herein have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed. For trading activity the Clearing broker will be reflected. In certain cases the Clearing broker will differ from the Executing broker In calculating ratings distributions and weighted average portfolio quality, Insight assigns U.S Treasury and U.S agency securities a quality rating based on the methodology used within the respective benchmark index. When Moodys, S&P and Fitch rate a security, Bank of America and Merrill Lynch indexes assign a simple weighted average statistic while Barclays indexes assign the median statistic. Insight assigns all other securities the lower of Moodys and S&P ratings. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs. The volatility of the indices may be materially different from that of the strategy. In addition, the strategys holdings may differ substantially from the securities that comprise the indices shown. The BofA Merrill Lynch 3 Mo US T -Bill index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income The BofA Merrill Lynch 6 Mo US T -Bill index measures the performance of Treasury bills with time to maturity of less than 6 months. MThe BofA Merrill Lynch Current 1 -Year US Treasury Index is a one -security index comprised of the most recently issued 1 -year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 1 -year note Kmust be auctioned on or before the third business day before the last business day of the month. ,The BofA Merrill Lynch Current 3 -Year US Treasury Index is a one -security index comprised of the most recently issued 3 -year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3 -year note must be auctioned on or before the third business day before the last business day of the month. N The BofA Merrill Lynch Current 5 -Year US Treasury Index is a one -security index comprised of the most recently issued 5 -year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 5 -year note (Omust be auctioned on or before the third business day before the last business day of the month. F4'7he BofA Merrill Lynch 1-3 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. The BofA Merrill Lynch 1-5 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than five years. Insight does not provide tax or legal advice to its clients and all investors are strongly urged to consult their tax and legal advisors regarding any potential strategy or investment W 22 ADDITIONAL INFORMATION As of March 31. 2019 CITY OF POWAY tiansight is a group of wholly owned subsidiaries of The Bank of New York Mellon Corporation. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference tithe Corporation as a whole or its various subsidiaries generally. Products and services maybe provided under various brand names and in various countries by subsidiaries, affiliates and joint ventures of The Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) prod are not guaranteed by or obligations of The Bank of New York Mellon Corporation or any of its affiliates. The Bank of New York Corporation assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2019 Insight Investment. All rights reserved. 9 N 00 O N co D D 0 m Z LS 9 City of Poway Investments 8t Cash with Fiscal Agent; Non -Managed Investments; General, Payroll tt Petty Cash Part Investments & Cash with Fiscal Agents Settlement Yield to Days to % of Total Face Book Market Unrealized INVESTMENT DESCRIPTION Date Maturity Maturity; Investment; Value Value Value Gain(Loss) 1st Am Gov't Obligations Money Mkt Fd 03/31/19 1.85% 1. 100.00%. $472,630.33 i $472,630.33 $472,630.33 $0.00 Average/Total - 1.85% 1': 100.00% $472,630.33 $472,630.33 $472,630.33 $0.00 Paying Agent or Uninvested Cash Et DITs - $0.00 Total Investments and Cash with Fiscal Agent $472,630.33 Part II Non-Manaeed Investments Settlement Yield to Days to g % of Total a Face Book Market Unrealized INVESTMENT DESCRIPTION Date Maturity Maturity! Investment Value Value Value Gain(Loss) County Pool 03/31/19 2.4M 1 74.23% $144,001.05 i P $144,001.05 — - $143 ,.487.00 ($514.05) Wells -Fargo CD 08/05/18 ;; 0.05%� T 1271 25.77%1 $50,000.00 1 $50,000.00 $50,000.00 $0.00 Average/Total - 1 81%j. m_ N/A 1 100.00%1 $194,001.05 _ $194,001.05 $193,487.00 ($514.05)